CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. New Zealand Seeks To Tax Online Sales

New Zealand Seeks To Tax Online Sales

by Mary Swire, Tax-News.com, Hong Kong

26 March 2015


The New Zealand Government is exploring the possibility of applying the goods and services tax (GST) to online purchases, according to Revenue Minister Todd McClay.

The Minister said that the Government is working with the Organisation for Economic Cooperation and Development (OECD) to develop rules to tax online goods and services fairly. However, it is also considering its own reforms, which would suggest that it may act before the OECD's conclusions are released in November 2015.

"A number of tax jurisdictions have implemented policy to address offshore purchasing and digital downloads," McClay said. "Early indications are that these measures are having their desired effect. I have therefore instructed officials to report to me in the short term on these developments and their suitability for implementing as part of the New Zealand tax system."

Prime Minister John McClay said the Government loses out on revenues worth over NZD200m (USD152.8m) as a result of the non-collection of GST on online sales. Currently, goods purchased online are not subject to tax if they are worth less than NZD400.

McClay said that the GST should be fair to consumers, retailers, and all taxpayers. "Where tax is not paid by one group, it must be made up for by another," he said.

TAGS: tax | commerce | goods and services tax (GST) | offshore | e-commerce | New Zealand | tax reform | retail | services

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »